Ener1 expects to emerge from bankruptcy within next two weeks

By Caroline Salls

Pittsburgh, Feb. 29 - Ener1, Inc. plans to emerge from Chapter 11 bankruptcy by mid March, according to a company news release. The plan is expected to take effect within the next two weeks.

The company said it will have a stronger financial position and a renewed focus on executing its long-term business strategy.

As previously reported, Ener1's pre-packaged plan of reorganization was confirmed on Tuesday.

"The holding company will exit bankruptcy with new equity funding and a stronger balance sheet, and its operating subsidiaries will be better positioned to meet the demands of existing and potential customers in the energy storage industry," interim chief executive officer Alex Sorokin said in the release.

Specifically, the company said the plan provides for a restructuring of its long-term debt and the infusion of up to $86 million of new equity funding, which will support the continued operation of Ener1's subsidiaries.

In addition, the holders of existing senior notes, convertible notes and a line of credit have agreed to restructure their debt in a partial debt-for-equity exchange.

All of the current common stock will be cancelled when the plan takes effect, and new common and preferred stock will be issued to both the current noteholders and in consideration of the new equity funding.

The existing notes will be exchanged for a combination of cash, new equity and new notes.

Fort Lauderdale, Fla.-based Ener1 is an alternative energy technology company. The company filed for bankruptcy on Jan. 26 under case number 12-10299.

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